“Retail Tenants Leverage Pandemic Stress for Rent Cuts” Wall Street Journal 1/11/2021

Some retailers, restaurants, gyms and other businesses are experiencing improved lease terms as they gain the upper hand over landlords looking to retain tenants


By Aisha Al-Muslim

Jan. 11, 2021 5:30 am ET


….“What’s happening in the market is most definitely going to cause an overall devaluation of real estate across the country,” said Matthew Bordwin, principal and managing director at real-estate brokerage Keen-Summit Capital Partners LLC.

Keen-Summit picked up dozens of new clients since March and represented dine-in theater chain Studio Movie Grill, burger chain Krystal and Italian restaurant chain Il Mulino in their bankruptcies filed last year, Mr. Bordwin said. About 60% of the firm’s work was rent reductions and the other 40% was lease terminations, yielding a success rate of about 80%, he said.

“There is so much pain in the marketplace,” Mr. Bordwin said. “Every business that I speak to is now looking at their real-estate footprint to see how they can reduce costs. The landlords…are getting calls from so many people that they can’t help everyone.”

… “Winning a second round of concessions is harder to do, Keen-Summit’s Mr. Bordwin said.

“Outside of a bankruptcy situation, the landlords are working as hard as they can to hold the line. In some cases, I think to their detriment. They’re going to force tenants into bankruptcy,” he said.

Full Article  https://www.wsj.com/articles/retail-tenants-leverage-pandemic-stress-for-rent-cuts-11610361000